Determinants of Bond Market Development in Emerging and Developing Economies

<p>A study of local currency bond market development determinants in Emerging Market Economies (EMEs) is considered important when most EMEs and developing countries are shifting from issuing long-term debt securities in foreign currency denominations to their respective local currencies. This dissertation discusses key factors that influence the development of the local currency bond market (LCBM) in emerging developing economies. This study uses three different models to examine the importance of various factors. A total of 26 countries have been examined, and their data revealed several interesting results. The results show that larger economic size, larger banking systems, greater trade openness, larger stock market, lower inflation, fiscal deficit, and stable exchange rate promote LCBM development. The results of this study support most of the previous research findings on LCBM in EMEs. Further, capital controls in general and specific controls on bonds have a negative impact on the development of LCBM. In addition, a continuous supply of government local currency bonds supports the development of private sector LCBM. However, government foreign currency bonds were found to have a negative impact on private-sector LCBM growth.</p>

Name thesis:degree_name

Economics, PhD

Level thesis:degree_level

Open Access Dissertation

Discipline thesis:degree_discipline

School of Social Science, Politics, and Evaluation

Year dc:date.available

2022

Author dc:creator

• Alsadoun, Mohanad

Contributors dc:contributor

• Pierangelo De Pace
• Levan Efremidze

• capital controls
• foreign currency bond
• local currency bond market
• Economics

Repository record dc:identifier

https://scholarship.claremont.edu/cgu_etd/447

OAI identifier oai:identifier

oai:scholarship.claremont.edu:cgu_etd-1478